What is a 360 Painting franchisee's immediate obligation upon the occurrence of a Crisis Management Event?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, upon the occurrence of any event that occurs at or otherwise involves the Business, or that occurs generally at a local, regional, national or even global scale, which has or may cause harm or injury to customers or employees, such as contagious diseases, natural disasters, terrorist acts, shootings or other acts of violence, or any other similar circumstance which may materially and adversely affect the System or the goodwill symbolized by the marks (each a "Crisis Management Event"), Franchisee must immediately inform Franchisor by telephone or electronic means, must cooperate fully with Franchisor with respect to Franchisor's response to the Crisis Management Event, and must implement such remediation plan as may be instituted by Franchisor, which may include Franchisor requiring a temporary closure of the Business as part of the Crisis Management Event remediation plan.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, a 360 Painting franchisee has specific obligations in the event of a "Crisis Management Event." This is defined as any event that occurs at the business or on a local, regional, national, or global scale that could harm customers or employees, or negatively affect the 360 Painting system or brand goodwill. Examples include contagious diseases, natural disasters, terrorist acts, shootings, or other acts of violence.
Upon the occurrence of a Crisis Management Event, the franchisee must immediately inform 360 Painting by telephone or electronic means. This ensures that the franchisor is promptly aware of the situation and can begin to coordinate a response. The franchisee is also obligated to fully cooperate with 360 Painting in the franchisor's response to the event.
Furthermore, the 360 Painting franchisee must implement any remediation plan instituted by the franchisor. This plan may include the temporary closure of the business as part of the crisis management strategy. This immediate response and cooperation are crucial for protecting the safety of customers and employees, as well as maintaining the integrity and reputation of the 360 Painting brand during challenging times.